Information: Overview of Bahir Dar University

Bahir Dar University 54,000 Students

1. Institute of Technology,2. Ethiopian Institutes of Textile and

Fashion Technology (EiTEX),3. Institute of Land Administration4. College of Agriculture and

Environment, 5. College of Medicine and Health

Sciences, 6. College of Business and Economics7. College of Natural sciences8. Maritime Academy and 9. Sport Academy

i. Bsc and Msc Degree program .1. Leather Engineering, LPDE (180

students)2. Textile Engineering3. Garment Engineering4. Fashion Design5. Textile & Apparel Merchandizing6. B.Ed. in Garment Technology7. B.Ed. in Textile Technologyii.  PhD programs

• Fashion Technology• Textile Technology

Annual Conference on CTA (8th,2019)

EiTEX = 3000 STUDENTS

BAHIR DAR UNIVERSITYETHIOPIAN INSTITUTE OF TECHNOLOGY FOR

TEXTILE & FASHION (EiTEX)

TITLE: Design Related Challenges of the Ethiopian Leather FootwearManufacturing Industries and possible areas of Interventions

BY:1. Fitsum Etefa (MSc. in Leather product design and Engineering)

2. Yordanos Hailu (MSc. in Leather product design and Engineering)

3. Suril Panneerselvam (Msc. in Leather Technology)

August 2018

Out lines

IntroductionBackground

Problem statementObjectives

Research QuestionsSignificance of the Study

Methodology

Work PlanReference

What is Designing?Designing is a process of creating and improving a given product or process (Design Varies with time).

It is Value Addition

It primary process before process or product made (Apparel, Building, Automobiles, Road, Electronics etc.)

Design can Help:To translate ideas into reality.To Change existing situations into preferred ones.

1. Introduction

Cont.

Currently Footwear is a fashion oriented product dependent on seasonal changes.

Now a days Footwear industry is characterized by a fierceCompetition due to:

Continues change in demand of customers

Availability of Variety designs.

Continuous innovation both in functionality and Esthetics

Cont.

i. Manual Footwear Design ii. Computer based Footwear design

A successful and good design is achieved when all the elements and principles of design work together harmoniouslyGood Design = Elements + Principle

Footwear Manufacturer need to focus on designing based on customers demand for successes full market share.

In today’s Footwear Manufacturing, buyers are demanding:

Ethiopia’s footwear industry is priority sector and has significant international comparative advantages because the country has:

2. Background of the Study

i. Lower prices, ii. Best quality product,iii. Best design and iv. Long service.

huge raw material source cheap labor Good Electric power supply

Source: (Oqubay 2015).

Ethiopian Livestock size in million

Footwear Export destinations: Europe, Africa, Asia, USA and North America,Source: Yiheyis 2014a.

Source: FAOSTAT Brazil has the largest cattle inventory in the world followed by India and China. Ethiopia is Africa’s leading livestock producer This huge potential resource will play a significant role for the Footwear manufacturing industry

Leather Footwear in Ethiopia

The leather footwear sector is the largest component of leather production which accounts >65% of the global leather consumption(Mwinyihija 2015).

The Ethiopia leather footwear sub-sector accounts for 72% of all leather and leather products (Jote 2015).

Leather shoes in Ethiopia started in 1930s: (Armenian merchants founded :

Tikur Abay Shoe Factory (Asko Tannery) and

Anbessa shoe factory (Tetsushi Sonobe , 2007).

Source: LIDI, Five year development plan, 2015, p.29

Export overview: GDP I (2010/2011-2014/2015)

Product Type Finishedleather

Footwear Goods andGarment

Glove Total

Plan 136.6 315.5 (63.5% ) 36.67 8.05 496.8

Performance 92.10 34.57 (26.03%) 0.83 5.34 132.86 (26.7%)

This indicates that the manufacturing sector performance is low and an improvement is required.

Export Overview of Ethiopian Footwear Industry in million USD 2014/2015

GDP II: (2015/16-2019/20) Leather and Leather product Export plan in million USD

Type Finishedleather

Footwear Goods andGarment

Glove LeatherArticles

Total

Plan (2019/2020) 214.1 485.8 (60%) 4.9 75.4 19.6 800

This indicates that the leather footwear sub-sector has given more emphasis compared to the other leather subsectors..

However, based on the previous plan year performance (26.03%), the sector will not also meet the new or current plan year performance unless an improvement method is used by the footwear factories. To overcome this problem different researches are required

3. Problem StatementCurrently Ethiopia is emerging as one of the leading footwear exporters in sub-sahara Africa along with South Africa (Workman 2015).

However, Ethiopia’s share in the global footwear market is lower than its place in leather trade (Lakew 2015b).

In the year 2015, Ethiopia accounted market share 0.02% of the total world export footwear while China (20.1%) and Italy (14.2 %) (Workman 2015).

Different Studies done on Ethiopian leather footwear industries by UNIDO (2012), LIDI (2015), Japan Embassy (2008) and other researchers indicated that: The footwear sector is not performing well.The footwear sector has many unresolved issues and constraints that restrain the development of the sector

Identified Common Constraints and gaps of Leather Footwear product industry

According to UNIDO Independent Evaluation Report (2016) , Mines ParisTechWorking Paper (2016), UNCTAD (2018) and other shows the major problems occurring in the leather footwear factories are:

i) Shortage of finished leather

ii) Lack of good Management and skilled labor

iii) Design weaknesses Difficult to compete with the sophisticated and fast changing design of footwear and Poor ability to develop attractive designs.

Ethiopian Footwear production Industries

1. Customer order product (Customer order based on their own design)

Most of Ethiopian Footwear manufacturing industry (Export)follow customer order product.

It is fixed order. Less Market share Possibility to loose customers.

2. Manufacturer product (Based on Market research) It is flexible. Increase Market share. Increase product selling cost. Increase profit.

Cont.

Not every product will appeal to every customer or client base,so defining the target market for a product is a criticalcomponent that must take place early in the product developmentprocess.

To increase the competency and global performance of theEthiopian footwear product sector:There is critical need to enhance the capacity in the areas of:

i. Forecasting,

ii. Designing,

iii. Product development and Innovations

i. Forecasting (Designing)Forecasting is a process of estimating future growth and outcomes of product based on past events (Colors, textures, materials, prints, accessories etc).It helps to attract consumers to purchase products in the near future.

ii. Product development (Designing)It is creation new product or modification of an existing product with

different characteristics that satisfies customer demand or want.Product development includes:

Concept or Idea generation based on customer needs and want, Designing,Product development and Testing Marketing research and pricing,Commercialization

Cont.

To increase export market share of Ethiopian footwear, design plays major role where the foreign companies have a huge advantage, with a better global exposure.

To earn better revenues.

Design and designing being the base of profit for any organization, becomes a vital area in terms of Research and development.

Objectives

Primary objectivesThe main objectives of this study is to identify design related challenges of Ethiopian footwear industry in order to propose appropriate intervention method so as to improve its global competitiveness.

Specific objectivesExtensive review of the footwear sector to evaluate the current designing methodology being practiced.To Identify root causes of design challenges and gaps of footwear Industries.To Propose possible intervention and improvement area which fill the gapTo Develop Footwear designing manual and related material that facilitate footwear designingTo make any other recommendations as may be appropriate for sustained growth and competitiveness of the sector

Research Questions

What are the existing designs and designing methodologies being currently practiced in the footwear Industry?

How to identify the root causes of design challenges and gaps of footwear Industries?

What are the possible intervention area and resources required for intervention?

How the interventions are implemented?

How to Develop Footwear designing manual and related material?

What are the recommendations for sustained growth and competitiveness of the sector

Scope of the study

The Ethiopian footwear (shoe) industry is, composed of two sub-sectors:

i. The larger mechanized shoe industries sub sector andii. The smaller production units – micro, small and medium enterprises

including the informal ones.

As LIDI, 2017, there are currently 20 large mechanized footwear factories in the formal sector.

Larger mechanized ones which are export-oriented.

Thus, this study is limited or gives more focus in assessing, reviewing and analyzing design challenges to large mechanized footwear in order to propose possible intervention area and improvement method.

Significance of the study

Beneficiaries Of this Paper Can be: Ethiopian footwear industries, ALLPI, EiTEX and Researchers

Capacitating the industries in the process of contemporary designing

Enhancing design awareness in order to compete in global market.

Creation of design as a marketing tool.

Motivating designers to follow seasonal change in order to search new designs.

Improving quality of life by encouraging good design.

Methodology

Data collection

Secondary Data Interview

Data analysis and interpretations

Identifying possible intervention and improvement area which fill the gap

Recommendations Result analysis, generate report and final documentation

Preliminary Assessment

QuestionnaireObservation

Problem Description and Objective Identification

Reviewing existing literatures

Identifying root causes of design challenges and gaps of footwear Industries.

Possible Intervention area delivery and training for Footwear Industries

Research TeamS/n Name Work and Position Degree and Field of

StudyNationality

1 Mr. FitsumEtefa

Lecturer and Leather Engineering program Head

MSc. in Leather product design and Engineering

Ethiopian

2 Mr. SurilPanneerselvam

Lecturer Msc. in Leather Technology

Indian

3 Mr. YordanosHailu

Lecturer (MSc. in Leather product design and Engineering)

Ethiopian

Work PlanTime Activity DurationSept 2018-

Feb 2019Data collection, Data analysis and interpretations. 6 Months

Mar 2019-

May 2019Identifying root causes of design challenges and gaps

of footwear Industries

3 months

Jun 2019-

Aug 2019

Identifying possible intervention and improvement area 3 Months

Sep 2019 -

Nov 2019

Possible Intervention area delivery and training for Footwear Industries

3 Months

December -

2019

Recommendations Result analysis, generate report and final

documentation

1 Month

Total 16 Months

Result so far attained

Data Collection

Primary Sources Secondary Sources

ObservationInterview and DiscussionQuestionnaire

Documents, Researches,Literature reviewIndustry records

Result so far attained Research groups visited some of Footwear Manufacturing Industry in Addis Ababa

Common Footwear Manufacturing process the industries followingS/n Section Machine Type

1 Design and product development section Manual Designing2 Leather cutting Department Machine and Manual based

3 Skiving and Stitching section Machine 4 Insole Attachment section Machine and Manual based

5 Lasting and Bottoming Section Machine and Manual based

6 Finishing and Inspection section Machine and Manual based

7 Packing Section Manual

Local Footwear mfg Company ProfileNo. Company Name Market Share Location Owners

NationalityLocal Export1 Anbessa Shoe Sh. Co 96% 4% A.A. Lideta Ethiopian2 Bostex Shoe Factory 10% 90% A.A/K.Keranyo Ethiopian3 Crystal Shoe Factory 70% 30% A.A/Nifas Silk Ethiopian4 OK Jamaica - - Ethiopian5 Kangaro Shoe Factory 90% 10% A.A/Nifas Silk Ethiopian6 Peacock Shoe Factory A.A/Nifas Silk Ethiopian7 Ramsay Shoe Factory 45 55 A.A/N-Silk/Industry Zone Ethiopian8 Ras Dashen Shoe plc - - A.A/N-Silk/Industry Zone Ethiopian9 Sheba Leather Industry Plc - - Tigray/Wukro Ethiopian10 TikurAbay Shoe Share Com 80% 20% A.A/Asko Ethiopian

11 Wallia Leather and Leather Products - - A.A /Kaliti Ethiopian

12 Modern Zege leather product 90% 10% A.A/Kalit Ethiopian13 Ethio Footwear Cluster - - A.A/Yeka/Shola Ethiopian

14 Park shoe & Leather Production Factory - - A.A Ethiopian

Foreign Footwear mfg Company ProfileNo. Footwear Companies Name Location

Market ShareNationalityLocal Export

1 Fontanina Shoe Factory A.A. Saris 50% 50% Saudi2 George Shoe Factory A.A 0% 100% Taiwan

3 Huajian International Shoe City Plc

Dukem/Eastern Industry Zone 0% 100% Chinese

4 New Wing – Addis Shoe Factory Plc A.A/Saris 0% 100% Chinese/It

aly

5 Oliberte Ltd (Ethiopia Branch)

A.A/Akaki 0% 100% Canadian

6 Mohan.PLC Gellan 75% 25% Turks

Sampling and Questionnaires Preparation

Total Footwear Manufacturing Company = 20 Company

Estimated Man power in Designing Section per Factory = 4-6

Minimum estimated population = 80 personnel

Maximum estimated population = 120 personnel

Questionnaire preparation: Sample size Types of Sampling Techniques

Probability

1. Simple random sampling.

2. Stratified random sampling.3. Systematic random sampling..4. Cluster sampling.

Non Probability

1. Quota Sampling.

2. Convenience sampling.

3. Purposive sampling (Homogeneous).

4. Snow ball Sampling.

Determining Sample Size

i. Using a census for small populations (<=200 entire population) ii. Imitating a sample size of similar studies.iii. Using published tables, andiv. Applying formulas to calculate a sample size.

Remaining workQuestionnaire Preparation Data analysis and interpretationsIdentification of Footwear design challengesIdentification of possible intervention and improvement areaPossible Intervention area delivery and training for Footwear IndustriesRecommendationsResult analysis, generate report and final documentation

Reference[1] The Federal Democratic Republic of Ethiopia, The Second Growth And

Transformation Plan (GTP II) (2015/16-2019/20), National Planning Commission, Addis Ababa, September 2015.

[2] UNCTAD (2018) National Green Export Review of Ethiopia: Leather and Sesame, UNCTAD/DITC/TED/2018/2,Ethiopia.Availablat http://creativecommons.org/licenses/by/3.0/igo/.

[3] UNIDO (Unite Nations Industrial Development Organiza-tions), “Investment Opportunities for Development”, Millenni-um Cities Initiatives, Vienna, 2009.

[4] UNIDO. 2010. Future Trends in the World Leather and Leather Products Industry and Trade. Viena United Nations Industrial Development Organization.

[5] UNCTAD (2018), National Green Export Review of Ethiopia: Leather and Sesame, UNCTAD/DITC/TED/2018/2, Ethiopia. Available at http://creativecommons.org/licenses/by/3.0/igo/.

[6] World Cattle Inventory, FAOSTAT, 2014 [7] Mwinyihija, Mwinyikione. 2015. "Africa’s Renaissance and Potential in

the Leather Sector with Reflection to the Global Performance." World Leather Congress.

[8] Jote, Netsanet. 2015. "Impact of Supply Chain and Industrial Cluster on the Competitive Advantage of Ethiopian Leather Sector." PhD Industrial Engineering, School of Mechanical and Industrial Engineering Addis Ababa University.

[9]. Tetsushi Sonobe , John Akoten , Keijiro Otsuka, The Development of the Footwear Industry in Ethiopia: How Different Is It from the East Asian Experience?, Prepared for the Global Development Network Annual Conference Beijing, China, January 2007.

[10] Yiheyis, Tigist. 2014a. "Cluster Supply Chain Model Development for Footwear SMEs." Masters of Science in Industrial Engineering Stream, Addis Ababa Institute of Technology, Addis Ababa University.

Reference

[11] Oqubay, Arkebe. 2015. Made in Africa: Industrial Policy in Ethiopia. First ed: Oxford University Press.

[12] Lakew, Yehualashet Demeke. 2015a. "Determinants and Impediments in the Internationalisation Process of Small and Medium-Sized Manufacturing Enterprises in Ethiopia." Doctor of Administration, Business Management, University of South Africa.

[13]. Leather Industry sector development plan 2015/16 – 2019/20: Leather Industry Development Institute (LIDI), 2015.

[14] FDRE (2016) Growth and Transformation Plan, 2015/16-2019/20, Ministry of Finance and Economic Development, Addis Ababa

[15] Mines ParisTech Working Paper, Industrial Organization, Ethiopia Does Ethiopia have a comparative advantage in the leather industry?, February, 2016

[16].The Embassy of Japan in Ethiopia, A Series of Studies on Industries in Ethiopia, March 2008.

Reference

Questions Comments and Suggestions